topic Re: Preparing for Tomorrow (NISSAN) in Auto Loans

Preparing for Tomorrow (NISSAN)

ALLevesque — Sun, 30 Dec 2012 16:44:05 GMT

I'm not sure what info to provide, this is my first post. My score, TU-704 (this was as of a couple weeks ago, it may have gone down due to a couple of inquiries) so I may be looking at the 680-690 area. My husband will be cosigning for the extra income (about $80k combined), his scores are about the same as mine, maybe a little lower.

We're looking at purchasing a 2012-2013 Nissan Rogue, and are going into the dealership tomorrow to look at a few. Here are the ones that fall into our price range based on sale price:

2013 Nissan Rogue S AWD, MSRP:$25,150, Sale Price:$20,482

2013 Nissan Rogue S AWD, MSRP:$26,020, Sale Price:$21,364 (This one has the special edition package, with privacy glass which is most appealing to me but i can live withut)

2012 Nissan Rogue S AWD, MSRP: $25,255-25,500 Sale Price:$20,725-20,999 (they have 2- both special edition package)

These all seem like great deals to me. I plan on trying to finance through Nissan, and according to their site i would qualify for 2.9 for 72 Months, hoping to get that to 1.9 for 72 months with a little haggling with the finance manager (this worked for us on our last 2 vehicles, but we did not negotiate sale price at all...oops!)

Trading in our 07 camry, which will have a little negative equity.

I also qualify for the Nissan College Grad Program-- which seems like even more rebates- but not sure if this will work out to be a better deal than the sale prices above.

Here is some more info on the college grad program- http://www.nissancollegegrad.com/home/details#2013-model-year-savings

What are your thoughts? It seems as though the sale prices are well below what the invoice price would be, which would be a better deal than the college grad program?

I just want to go into the dealer knowing what I'm talking about... so any info is greatly appreciated!

Re: Preparing for Tomorrow (NISSAN)

Anonymous — Sun, 30 Dec 2012 17:34:40 GMT

How much negative equity are we talking? With negative equity, it is cheaper to roll that into a lease for 36 mos and once the lease is up, you are done with the negative equity and you can choose to lease another new vehicle or buyout your lease by financing the residual value for another 24-36 mos. You can get more car through a lease and your car payment will be less and you would be looking at the same number of payments (60-72 mos). Your scores look good enough for a lease especially after the dealer auto enhances them. If you plan on purchasing your lease after 36 mos, the mileage does not matter...you can drive it as much as you want. Given you are looking at 72 mos, leasing for 36 and then financing the residual value for 24-36 mos, will result in a much cheaper car payment over the same period for a higher priced vehicle. It is a way to get the vehicle you truly want without the higher car payment.

Re: Preparing for Tomorrow (NISSAN)

ALLevesque — Sun, 30 Dec 2012 17:37:45 GMT

Interesting.. We never really thought about lease before, due to the limit on mileage. I'll look and see what Nissan is running for lease deals. Thanks for the suggestion!

Re: Preparing for Tomorrow (NISSAN)

tisch0791 — Sun, 30 Dec 2012 17:59:02 GMT

I just bought a new 2012 Maxima on 12/26. I got it for $9560 UNDER sticker ($4000 in rebates plus even more "marketing" discount from dealer). MSRP was 40760 and we paid $31200. That's almost 25% off MSRP! This was a little higher discount than what I had researched on TrueCar.com for average selling price in my area for the exact car I bought. Area average was about 22.5% off MSRP. Had TTL above that PLUS they will tack on a $699 dealer fee at the end. We didn't like the fee so that's where they knocked off more of the selling price with "marketing" money.

We made this choice in lieu of low rate financing. We tried to negotiate price AND get the lower rate but they didn't budge. We did 72 months at 4.23% with NMAC. We were preapproved with our bank for 3.5% but selling price would have been more if we used our lender. Also had preapproval with Cap One Blank Check. Either way my payment was identical for the same term. Most likely we will refinance back with our credit union in a couple of months at the lower rate.

It really felt great to go in knowing we were already approved; it was a good negotiating tool.

Don't forget about that dealer fee - put up a stink about it and see if they wiggle more on the price with you. They say they can't make it go away, but they can knock off more money on the price of the car. Go for a 2012 if you can because the discounts are big right now and they will be VERY aggressive with pricing if they really want to get them off their lot. Good luck!

Oh and scores were 699 and 665 Equifax. Good seasoned auto loans (one open, others paid off) and high AAOA on our few credit cards probably helped with our approvals.

Re: Preparing for Tomorrow (NISSAN)

ALLevesque — Sun, 30 Dec 2012 18:09:36 GMT

Yeah- I'm afraid that the sales price won't be the same with the special financing. So this is what makes me think the college grad program will be my best bet as i'll get those discounts PLUS the special financing. (at least this is what I'm understanding from the college grad site nissan provides.)

I guess I'll see tomorrow when we go in.- I just don't want to finance more than 24k. Especially if i'm above 2.9%. I guess we will see tomorrow, I just dont want to come off as weak! I hate this whole process as I always feel like I'm getting suckered in (because i want it so bad.. haha!)

Re: Preparing for Tomorrow (NISSAN)

Anonymous — Sun, 30 Dec 2012 18:11:42 GMT

The lease deals should be pretty good around this time of year and you don't have to put as much money down either; usually just the first month's payment. So to clarify on the mileage, you only have to stay under the mileage specified in your lease IF you return the car at the end of the lease and lease or finance a different vehicle. If you finance the residual value of your lease or "buy it out", mileage does not matter because you are purchasing it. Make sure the lease is close ended. A close ended lease locks in the buyout amount at signing and protects you against depreciation. Typically the residual value is about half the MSRP. To get the best deal on a leased vehicle, negotiate the price first and then tell them you want to lease. Go in there and play like you want to finance the vehicle and then say you changed your mind and want to lease the agreed upon price.

Re: Preparing for Tomorrow (NISSAN)

Anonymous — Sun, 30 Dec 2012 18:14:27 GMT

Usually the college grad programs come with both a lease and finance deal. I know Acura does as I just leased from them last month.

Re: Preparing for Tomorrow (NISSAN)

ALLevesque — Sun, 30 Dec 2012 18:14:49 GMT

I'll look into this, thanks!

I'm guessing we will have about 2k of negative equity from the Camry, -- I'd like to get at least 11k for it, which would mean 1700 of negative equity-- I guess we will see tomorrow!

Re: Preparing for Tomorrow (NISSAN)

ALLevesque — Sun, 30 Dec 2012 18:16:52 GMT

The Grad program offers $250 under dealer invoice PLUS applicable rebates.

according to the FAQ's, i would also qualify for the best available rate. Which as far as I can tell is 1.9% for 72 months (should I decide to buy).

Re: Preparing for Tomorrow (NISSAN)

Anonymous — Sun, 30 Dec 2012 18:29:15 GMT

$2K is quite a bit of negative equity. I would roll it into a lease if I were you. I had about the same amount of negative equity on my 2006 Altima when I traded it in for a 2012 Acura TL. The monthly payment to finance $35,700 was $661 and to lease $18,600 over 36 mos was $467...big difference. I ended up with a $536 a month payment because I got tinted windows and other extras for the vehicle plus a maintenance plan that covers all my tire rotations, oil changes, plus blown out tires and dings dents and scratches are all fixed for no additional cost. So at the end of the lease, my buyout is $35,700 minus $18,600. I also purchased the 15K miles per year plan as I am thinking strongly about buying out my lease but not 100% sure. So for you, you would approx. lease $12,000 for 36 mos and then finance $12,000 at lease buyout for another 24-36 mos. Your payment would be under $300 per mo if you lease. If they have a great lease special running, it could be under $200 per month, which could save you up to $200 per month in car payments.

Re: Preparing for Tomorrow (NISSAN)

ALLevesque — Sun, 30 Dec 2012 18:39:37 GMT

I like the sound of that, too.

I'll have to look into down payment too, we have limited cash since the Holidays have practically drained savings. I have some to work with, and could potentially free up some more if necessary. We've never put anything down with any previous vehicles, so far this is the only car we've traded (or thought about trading) with neg. equity.

Re: Preparing for Tomorrow (NISSAN)

Anonymous — Sun, 30 Dec 2012 20:47:52 GMT

Good luck! Let us know how it goes. Many lease offers require zero down for the holidays. I'm sure there are similar offers for financing as well.

Re: Preparing for Tomorrow (NISSAN)

ALLevesque — Sun, 30 Dec 2012 21:53:57 GMT

I'll update tomorrow

Re: Preparing for Tomorrow (NISSAN)

ALLevesque — Tue, 01 Jan 2013 02:44:00 GMT

I didn't end up buying a Nissan after all, we end up going with a Subaru Forester.

Re: Preparing for Tomorrow (NISSAN)

Anonymous — Tue, 01 Jan 2013 18:28:58 GMT

Cool! Did you finance or lease? What did you put down and what APR did you get if you financed?

Re: Preparing for Tomorrow (NISSAN)

ALLevesque — Wed, 02 Jan 2013 00:44:14 GMT

We purchased instead of leased. We just put down the minimum they asked for- $359-- not sure why such an odd amount. But we got 1.9% apr. End up financing a little over 25k- purchased Gap and a service plan which brought it up a little over the MSRP, but considering we rolled over about 2k in Neg. Equity we didn't do too bad!

Re: Preparing for Tomorrow (NISSAN)

maiden_girl — Wed, 02 Jan 2013 03:31:04 GMT

Congrats! How long is your term?

Re: Preparing for Tomorrow (NISSAN)

ALLevesque — Wed, 02 Jan 2013 13:44:50 GMT

We went with a 72 month term